HDFC Bank posts 5 percent rise in second quarter net profit as deposits and advances expand

HDFC Bank reported a nearly 5 percent year-on-year increase in standalone net profit to 19,509.96 crore rupees for the second quarter of financial year 2027, up from 18,641.28 crore rupees in the same period a year ago.

Earnings And Margins

Net interest income climbed 9.72 percent from a year earlier to 34,619.18 crore rupees, backed by total interest earned of 83,426.60 crore rupees. Net interest margin stood at 3.16 percent on total assets and 3.32 percent on interest-earning assets. Net revenue reached 48,450 crore rupees, while other income came in at 13,830 crore rupees. Provisions and contingencies totaled 3,570 crore rupees, with a credit cost ratio of 0.44 percent.

Asset Quality And Growth

Asset quality improved as the gross non-performing asset ratio fell to 1.11 percent of gross advances as of September 30, 2026, compared to 1.24 percent a year prior and 1.17 percent in the previous quarter. The net non-performing asset ratio remained steady at 0.37 percent. Gross advances grew 16.3 percent year-on-year to 32,19,500 crore rupees, led by a 23.5 percent surge in small and mid-market enterprise loans. Corporate and wholesale loans expanded 16.4 percent, and retail loans grew 11.7 percent. Total deposits increased 18.8 percent to 33,27,400 crore rupees, with time deposits rising 22.8 percent and current and savings account deposits growing 10.8 percent.

Leadership And Capital

This quarter marks the final earnings report under managing director and chief executive officer Sashidhar Jagdishan, whose tenure concludes on October 26, with Anup Bagchi lined up to succeed him. The bank's Basel III capital adequacy ratio stood at 18.9 percent, comfortably above the regulatory requirement of 11.9 percent, while the Common Equity Tier 1 ratio was 17.1 percent.

Context

Major commercial banks report quarterly earnings to provide regulators, shareholders, and the public with a clear view of their financial health, lending activity, and asset quality. Key metrics such as non-performing assets and net interest margins help track how well financial institutions manage credit risk and generate income from core operations.